Is There Such Thing as Jewelry Insurance?
February is a time devoted to love—and expensive gifts. This month, you may have bought or received an engagement ring, a pair of earrings, a pendant, or any number of sparkly adornments. Of course, you need to know how to care for each piece and keep it safe, but you might also need to get some sort of jewelry insurance to cover them in case of theft or damage.
How is jewelry insured?
Jewelry and other valuable items are often covered by your home insurance policy. However, that protection typically only goes so far. You may have an engagement ring worth $10,000, but if it gets stolen, your policy might only pay $5,000. Therefore, if you want to replace the item, you’ll have to pay a good portion of the cost out-of-pocket.
That’s why many people choose to add a “floater policy” to their home insurance so it will cover expensive jewelry. Floaters not only increase your coverage but may also eliminate deductibles.
Will this added jewelry insurance require an appraisal?
Probably. Your carrier will insure pieces based upon their appraised value instead of their retail cost. That means you should also have it re-appraised every two or three years to account for market fluctuations.
Are there more options than just floaters?
Yes. Floaters are easy to get, but they may not always offer complete coverage. If you chip your jewelry for instance, then a floater policy may not help you replace it. Your other option is to find stand-alone jewelry insurance with a specialty company. A benefit to a stand-alone policy is that you can file claims without experiencing a direct impact on your homeowner’s premium. That’s not necessarily true with home insurance.
If you need extra protection for this year’s Valentine’s Day gifts, then give your Hibbs agent a call. We’ll go through these options with you and help you decide which jewelry insurance option best suits your needs.